Lew to slam sequester, urge investment in hearing: report

Treasury secretary-nominee Jack Lew will warn about the dangers posed to the U.S. economy by automatic budget cuts and also stress the importance of “critical investments” when he testifies at his confirmation hearing on Wednesday, Bloomberg reported.

According to Bloomberg, Lew will say: “We…have to avoid doing anything to degrade our national security or derail the economic recovery through abrupt moves in the short term.

“That is why we cannot allow the series of harmful automatic spending cuts known as the sequester to go into effect on March 1.”

Cuts to defense and domestic programs totaling $85 billion in 2013 will begin on that date absent congressional action.

Lew will also say that the U.S. must move ahead with reducing its deficit but leave “sufficient room for critical investments,” according to the report.

President Barack Obama is expected to propose spending on such investments as infrastructure and clean energy when he gives his State of the Union address on Tuesday night. But those same proposals will ratchet up a confrontation with Republicans who insist on spending cuts for many programs.